Decrease in accounts payable constitutes source of cash

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Reference no: EM131819688

True or False

A) An increase in accounts receivable constitutes a use of cash while a decrease in accounts payable constitutes a source of cash.

B) If CFFA is 100, CFTC is 60 and dividends paid is 20, then the firm repurchased stock in the amount of 20.

C) If a firm’s CFFA or “free cash flow” is negative, this means that the firm will be unable to pay any cash dividends.

D) An increase in inventory constitutes a use of cash.

E) Accounts payable represents short-term loans extended to the corporation by suppliers.

F) If there is no change in gross fixed assets from one year to the next, then net fixed assets would have to have increased.

G) The balance sheet identity indicates that total liabilities can be found by adding total assets to total equity.

Reference no: EM131819688

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